The Canadian stock market is rising in early trade Thursday, as it attempts to bounce back from yesterday's decline. The majority of the Canadian sectors are trading in the green, led by the energy sector. Crude oil prices are rising after the Federal Reserve minutes indicated yesterday afternoon that only a few policy makers want to consider a June rate hike.
Markets in Europe are turning in a mixed performance Thursday. The weaker than expected Eurozone private sector PMI report and the disappointing consumer confidence report are weighing on investor sentiment.
Markets in the United States are posting modest gains this morning. Some better than expected earnings reports from retailers are helping to overshadow some weaker than expected U.S. economic data. The lone positive report was the better than expected leading economic index.
While the Labor Department released a report on Thursday showing a bigger than expected increase in initial jobless claims in the week ended May 16th, the four-week moving average of claims still fell to a new fifteen-year low.
The report said initial jobless claims climbed to 274,000, an increase of 10,000 from the previous week's unrevised level of 264,000. Economists had expected jobless claims to show a more modest increase to about 270,000.
With lagging supply relative to demand putting upward pressure on home prices, the National Association of Realtors released a report on Thursday showing an unexpected decrease in existing home sales in the U.S. in the month of April.
NAR said existing home sales fell 3.3 percent to an annual rate of 5.04 million in April from an upwardly revised 5.21 million in March. The decrease came as a surprise to economists, who had expected existing home sales to edge up to 5.24 million from the 5.19 million originally reported for the previous month.
Firms responding to the Federal Reserve Bank of Philadelphia's Manufacturing Business Outlook Survey revealed that regional manufacturing activity unexpectedly increased at a slower rate in May. A report released by the Philly Fed on Thursday showed that its diffusion index of current activity dipped to 6.7 in May from 7.5 in April.
While a positive reading indicates continued growth in regional manufacturing activity, economists had expected the index to inch up to 8.0.
Suggesting the paltry economic growth in the first quarter may be temporary, the Conference Board released a report on Thursday showing that its index of leading U.S. economic indicators rose by much more than anticipated in April.
The Conference Board said its leading economic index advanced by 0.7 percent in April after climbing by an upwardly revised 0.4 percent in March. Economists had expected the index to rise by 0.3 percent compared to the 0.2 percent increase originally reported for the previous month.
The benchmark S&P/TSX Composite Index is up 136.29 points or 0.90 percent at 15,209.12.
On Wednesday, the index closed down 48.19 points or 0.32 percent, at 15,072.83. The index scaled an intraday high of 15,187.02 and a low of 15,051.70.
The Energy Index is increasing by 1.76 percent. Crude oil prices rose Thursday morning as the dollar weakened against the euro amid signs the Federal Reserve will hold interest rates at zero for the time being. Minutes from the April meeting of the Fed released yesterday afternoon showed only a few policy makers want to consider a June rate hike.
Encana (ECA.TO) is advancing by 2.24 percent and Crescent Point Energy (CPG.TO) is higher by 2.91 percent. Cenovus Energy (CVE.TO) is up 1.11 percent and Canadian Oil Sands (COS.TO) is gaining 3.76 percent. Canadian Natural Resources (CNQ.TO) is rising by 1.55 percent.
Legacy Oil + Gas (LEG.TO) is surging by 8.55 percent and Suncor Energy (SU.TO) is adding 1.07 percent. Vermillion Energy (VET.TO) is gaining 3.08 percent.
Pacific Rubiales Energy (PRE.TO) is climbing by 2.42 percent, after it agreed to be acquired by ALFA, S.A.B. de C.V. and Harbour Energy for C$6.50 per share in cash.
The heavyweight Financial Index is higher by 0.60 percent. Bank of Montreal (BMO.TO) is advancing by 0.85 percent and Toronto-Dominion Bank (TD.TO) is up 0.39 percent. Canadian Imperial Bank of Commerce (CM.TO) is higher by 0.83 percent and Royal Bank of Canada (RY.TO) gaining 0.88 percent. National Bank of Canada (NA.TO) is adding 1.38 percent and Bank of Nova Scotia (BNS.TO) is rising by 0.40 percent.
The Capped Industrials Index is higher by 0.98 percent. Canadian National Railway (CNR.TO) is up 1.13 percent and Canadian Pacific Railway (CP.TO) is gaining 2.02 percent. Air Canada (AC.TO) is climbing by 1.05 percent and Finning International (FTT.TO) is higher by 0.40 percent.
The Capped Health Care Index is up 0.89 percent. Valeant Pharmaceuticals International (VRX.TO) is climbing by 2.30 percent and Concordia Healthcare (CXR.TO) is higher by 0.09 percent. Catamaran (CCT.TO) is gaining 0.30 percent.
The Capped Telecommunication Services Index is climbing by 0.56 percent. BCE (BCE.TO) is higher by 0.54 percent and TELUS (T.TO) is gaining 0.85 percent.
The Capped Information Technology Index is declining by 1.84 percent. Descartes Systems Group (DSG.TO) is falling by 1.71 percent and Sierra Wireless (SW.TO) is down 0.64 percent.
The Gold Index is falling by 0.62 percent. Gold prices are slightly weaker Thursday morning, failing to get much of a lift from yesterday's dovish Federal Reserve minutes.
Barrick Gold (ABX.TO) is lower by 0.59 percent and Kinross Gold (K.TO) is down 1.01 percent. B2Gold (BTO.TO) is falling by 1.15 percent and Royal Gold (RGL.TO) is losing 1.45 percent. Goldcorp (G.TO) is also declining by 0.62 percent.
The Capped Materials Index is also down 0.33 percent. Agnico Eagle Mines (AEM.TO) is falling by 0.60 percent and Franco-Nevada (FNV.TO) is losing 1.12 percent.
The Diversified Metal and Mining Index is falling by 1.68 percent. Lundin Mining (LUN.TO) is losing 0.51 percent and HudBay Mineral (HBM.TO) is lower by 1.57 percent.
First Quantum Minerals (FM.TO) is down 4.38 percent. The company plans to sell as much as C$1.44 billion of its common stock.
Open Text (OTC.TO) is sinking by 11.58 percent, after it provided disappointing fourth quarter guidance.
Shopify (SH.TO) is surging by 99 percent on its first day of trading.
On the economic front, the manufacturing sector in China remained in contraction in May, albeit at a slower pace, the latest survey from HSBC revealed on Thursday with a two-month high PMI score of 49.1. That was shy of expectations for a score of 49.3, although it was up from 48.9 in April. It also remained beneath the boom-or-bust line of 50 that separates expansion from contraction.
Eurozone consumer confidence deteriorated for a second straight month in May and at a faster-than-expected pace, preliminary estimates from the European Commission showed Thursday. The flash consumer confidence index dropped to -5.5. from -4.6 in April. Economists had forecast a score of -4.8.
The euro area current account surplus declined for the second consecutive month in March, with the drop more than the expectations of economists, due to a decrease in the surplus on goods trade and lower primary income, data published by the European Central Bank showed Thursday.
The current account surplus dropped to a seasonally adjusted EUR 18.6 billion from EUR 27.3 billion in February. Economists expected a bigger surplus of 26 billion euros.
The Eurozone economy lost growth momentum for a second successive month in May, flash data from Markit showed Thursday. The composite Purchasing Managers' Index dropped to 53.4 in May from 53.9 in April. The reading was expected to remain unchanged at 53.9.
Germany's private sector grew at the slowest pace in five months in May, flash survey data from Markit revealed Thursday. The flash composite output index fell to 52.8 in May, a 5-month low, from 54.1 in April. Despite signaling an expansion, the rate of growth was the weakest in 2015 so far.
The French private sector expanded at a moderate pace in May, flash survey data from Markit showed Thursday. The flash composite output index rose to 51 in May from 50.6 in April. The private sector output grew for the fourth consecutive month in May.
U.K. retail sales recovered at a faster-than-expected pace on clothing demand in April, providing a notable support to economic growth at the start of second quarter. The volume of retail sales including auto fuel expanded 1.2 percent month-on-month reversing a 0.7 percent fall in March, the Office for National Statistics reported Thursday. This was the fastest growth since November and exceeded a 0.4 percent rise forecast by economists.
In commodities, crude oil futures for June delivery are up $1.35 or 2.29 percent at $60.33 a barrel.
Natural gas for June is up $0.035 or 1.20 percent at $2.95 per million btu.
Gold futures for June are down $2.40 or 0.20 percent at $1,206.30 an ounce.
Silver for July is up $0.067 or 0.39 percent at $17.18 an ounce.
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